If you’re familiar with the idea of an outsourced bookkeeper, you may wonder how someone who isn’t in your company is able to manage your finances, or how some manage to do it long-distance. Thanks to excellent accounting software products, bookkeepers are able to support companies by performing a variety of functions such as payroll, financial projections and more.
Learn more below about what an experienced bookkeeper can do for your small business.
Move your company into the cloud
Outsourced bookkeepers – especially those working from a distance – rely on a client’s employees to provide timely, accurate information via online tools. Making sure the bookkeeper has that data requires everyone to move to and become familiar with the online accounting system. Once everyone is using the software, key personnel will be able to see the big picture of the company’s financials without having to chase down individuals for status updates.
Manage payroll
Payroll becomes increasingly complicated as your business grows from one employee to two or from two to three and beyond. A bookkeeper can aggregate time sheets from time tracking software and enter it into payroll to ensure employees are compensated accurately and on time. The bookkeeper uses the software not only to calculate the amount for checks but also to withhold the correct amount for employee taxes and to track how much the employer owes for payroll tax. Software can create multiple levels of approval to ensure all company decisionmakers are involved in these processes without spending too much of their own time on bookkeeping tasks.
Simplify sales data
Sales data is a huge part of your financial picture, but between payments, invoices, order fulfillment and shipping it can be hard to tell what the sales numbers actually are. If you’re unsure how much money you’re making, you won’t be able to make the right financial decisions for your business. Online bookkeeping software will help show a complete picture and save time throughout the sales funnel.
Track accounts payable and accounts receivable
Accounts payable and accounts receivable are at the heart of tracking your company’s cash flow. Your business may be expecting a big payment from a client that hasn’t come through yet, but a bookkeeper can keep tabs on when to notify the client of a late payment. You may think you have plenty of cash in the bank, but when you’re the customer who still hasn’t paid yet you’ll have less than you think when that bill comes due. An online tool helps the bookkeeper monitor accounts payable and accounts receivable to keep your budget in the black.
Generate reports
With all of the data entered into the online accounting software, bookkeepers can generate reports that will help leadership gain a better financial understanding of the company. Reports the software can generate include:
- Income and expenses
- Profit and loss
- Sales projections
- Cash flow
Because all data is aggregated immediately, creating these reports in real-time is an easy ask of your outsourced bookkeeper.
An outsourced bookkeeper provides you with financial expertise without having to hire a full-time employee. If you’re interested in hiring an outsourced bookkeeper for your small business, MCG Solutions is here to help. Contact us today to get started.